Actelis Networks shares are trading lower by 39% during Thursday's session. The company announced an agreement for the immediate exercise of certain outstanding warrants.

Actelis Networks Inc (NASDAQ:ASNS) shares are trading lower by 37% to $2.34 during Thursday's session after the company announced an agreement for the immediate exercise of certain outstanding warrants for gross proceeds of $3 million.

What Happened?

Actelis announced a definitive agreement for the immediate exercise of certain outstanding warrants to purchase up to 999,670 shares of common stock at $2.75 per share, initially issued in May and September 2023.

This exercise is expected to generate approximately $3 million in gross proceeds, before fees and expenses. H.C. Wainwright & Co. is the exclusive placement agent for the offering.

In return for the immediate cash exercise and an additional $0.125 per new unregistered warrant, Actelis will issue new Series A-1 and Series A-2 unregistered warrants, each allowing the purchase of up to 999,670 shares at $2.00 per share. The Series A-1 warrants have a term of five and a half years, and the Series A-2 warrants have a term of 24 months.

The offering is set to close around June 6, 2024, pending customary conditions, with proceeds intended for general corporate purposes.

Should I Sell My ASNS Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Actelis Networks have lost 21.0% year to date. This compares to the average annual return of -46.28%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Actelis Networks stock currently has an RSI of 98.22, indicating overbought conditions.

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ASNS has a 52-week high of $4.60 and a 52-week low of $0.36.